Covenants and Third-party Creditors : Empirical and Law & Economics Insights ...

by Daniela Matri

$121 · Offered by eBay

Covenants and Third-party Creditors : Empirical and Law & Economics Insights into a Common Pool Problem, Hardcover by Matri, Daniela, ISBN 3319620355, ISBN-13 9783319620350, Like New Used, Free shipping in the US This book adds to the debate on the effects of covenants on third-party creditors (externalities), which have recently become a focus of discussion in the contexts of bankruptcy law, corporate law and corporate governance. The general thrust of the debate is that negative effects on third-party creditors predominate because banks act in their own self-interest. After systematising the debated potential positive and negative externalities of covenants, th empirically examines these externalities: It investigates the banks’ factual conduct and its effects on third-party creditors in Germany and the US. The study’s most significant outcome is that it disproves the assumption that banks disregard third-party creditors’ interests. These findings are then interpreted with the tools of economic analysis; particularly, with the concept of common pool resources (CPRs). Around the aggregated value of the debtor company’s asset pool (as CPR) exists an n-person prisoner’s dilemma between banks and third-party creditors: No creditor knows when and under what conditions the other creditor will appropriate funds from the debtor company’s asset pool. This coordination problem is traditionally addressed by means of bankruptcy law and collaterals. However, the incentive structure that

• Publisher: Springer International Publishing A&G
• Year: 2017
• Binding: Hardcover
• ISBN: 9783319620350
• Condition: Fine

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